Godongwana given ‘budget options’ by cabinet

The delay in tabling the national budget to Parliament stemmed from disagreements within the Government of National Unity over a proposed hike in value-added tax from 15% to 17%. 

At Monday's meeting, GNU parties debated the options before the budget was tabled in March. 

The cabinet has now mandated Godongwana to choose from the discussed funding options to resolve the country’s budget deadlock.  

In a statement released on Tuesday morning, the government said he must consider South Africa’s fiscal constraints, protect lower and middle-income households, and support economic growth - in line with the Public Finance Management Act.  

Godongwana will work with a ministerial team led by Deputy President Paul Mashatile to finalise the budget.

President Cyril Ramaphosa has already addressed the postponement, describing it as “a challenge, not a crisis”.

"Even in more mature democracies, budget hiccups and mini-crises are common. When they occur, leaders must come together, resolve issues, and build consensus.

"What happened yesterday [during the postponement] is, in many ways, a sign of our own democracy maturing. Some have called it democracy in action, and I would agree.

"There are valuable lessons for all of us in the process that unfolded. It's important to distinguish between how events played out and the substance of what was ultimately presented to the nation," he said.

He stressed that the decision to postpone the budget was made by the cabinet and was not imposed by any single party.  

"And if anyone is alarmed, I’d say there’s no crisis—this is not a fatal fallout," he said.

The budget is now set to be tabled before Parliament next Wednesday.

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